If much has been done to model both trade and FDI separately [1]}, [2]}, [3]}, less is known about the interplay between the two, both with network approaches and with econometric models, since the traditional specifications (e.g. the gravity model) for trade does not account for FDI and vice-versa. This is exactly the gap we want to close in this chapter. For trade we will use BACI [4]}; while for FDI a dataset on transnational corporations (TNC) control networks, recently published in [5]}:For a network analysis on similar data see [6]}. in particular we will assume TNC affiliates as stocks of FDI, thus not having data on investments flows but rather a snapshot of the network of global corporate control as it was in 2010.This choice is due to the scarce availability of data about FDI flows on a worldwide scale. In fact, in this sense, the main dataset available is that provided by OECD, thus limited to 34 countries.
